At first glance, investing can seem like a daunting and overly complex task. But it doesn't have to be. In fact, investors who focus on the fundamentals of index fund investing can build a solid foundation for their financial future. One popular choice among beginner investors is the Vanguard 500 Index Admiral Fund (VFIAX).
Vanguard 500 Index Admiral debuted in November of 2000. Since then, VFIAX has accumulated assets of about $464.45 billion, according to the most recent data. This fund is designed to track the performance of the S&P 500 index, which includes 500 of the largest companies in the United States.
VFIAX and QQQM are often described as some of the best index funds for beginner investors. Both funds provide exposure to a diversified portfolio of stocks, helping investors spread their risk across different companies and industries. This can help reduce the impact of market volatility on their overall investment performance.
S&P 500 index funds are an excellent way to get diversified exposure to the heart of the U.S. stock market. By investing in VFIAX, investors are essentially buying a small piece of each of the 500 companies in the S&P 500 index. This can provide broad market exposure without the need to pick individual stocks.
VOO's expense ratio is also slightly lower at 0.03% while VFIAX is at 0.04%. The most important difference between the funds is with structure, as VOO is an ETF (exchange-traded fund) while VFIAX is a mutual fund. Both types of funds offer similar exposure to the S&P 500 index, but they have different tax implications and trading mechanisms.
This fund in particular has delivered a 5-year annualized total return of 12.16%, and it sits in the top third among its category peers. But if you're looking to invest in VFIAX, it's important to consider your investment goals, risk tolerance, and time horizon before making a decision.
With 2023 in the rearview mirror, our sights are set on what 2024 might bring. For investors, this means figuring out how to allocate new funds or rebalance existing portfolios. VFIAX can be a solid choice for those looking for long-term growth potential and exposure to the U.S. stock market.
The billionaire crushed the funds with a technique requiring absolutely no investing skill. This highlights the power of index fund investing, where investors can achieve market-like returns without the need for active management or stock picking.
